Interesting article:

"...The attention paid to the Dollar Index is in itself rather humorous. In essence, currencies are being valued in terms of other currencies and the index itself is a basket of rather few of them. Thus, the markets focus on what are primarily Dollar/Yen and Dollar/Euro trades. Commentators who are predicting a dire fate for the U.S. in Index terms are perhaps underestimating the ability of other central banks to undermine their own currencies in lock step..."

"...Opportunities to take advantage of distortions will abound..."

http://www.blacktomflint.ca/?p=155